Theses and Dissertations

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    Investment diversification and financial performance of Deposit taking saccos in Kenya
    (KCA University, 2026) Mugwe, Pauline W.
    The study sought to investigate the relationship between investment diversification and the financial performance of deposit-taking SACCOs in Kenya. The specific objectives of the study were to examine the effect of investments in bond market, real estate, and FOSA products on financial performance of deposit-taking SACCOs in Kenya. The study was guided by Keynesian Theory of Investment, Prospect Theory, Modern Portfolio Theory, and Theory of investments. The target population was 178 SASRA licensed deposit taking SACCOs in Kenya and sample size was 36. Secondary was collected from the 36 SACCOs over a period of five years. The study employed a mixed-methods research design, integrating both quantitative and qualitative approaches. This data was analyzed using descriptive and regression analysis to investigate the relationship between investment strategies and financial performance. Different indicators, were deployed with Return on Assets (ROA), serving as the dependent variable. Diagnostic tests of multicollinearity, Hausman test, normality test, heteroskedasticity, test unit root test, confirmed the reliability and validity of the collected data. The descriptive statistics revealed the suitability of the sampled data. The inferential analysis demonstrated that investment in bonds, real estate and FOSA products have varying positive and significant relationships with financial performance of SACCOs with all the three variables having p-values less than 0.05. The coefficient of determination, R2 was 0.818 which indicates that the estimated regression equation can predict only 81.8% of the variation. The adjusted R2 was 0.815 which tells us there was 81.5% variation in the financial performance of SACCOs due to changes in investment in bonds, real estate and FOSA products. The research therefore recommends that SACCOs should strive to give top priority to integrating and utilizing investment portfolio, such as bonds, real estate and FOSA products in order to improve the financial performance and profitability of SACCOs in Kenya. The study suggests that research on other determinants of investments should be revisited to evaluate their effects on corporate performance and profitability in SACCOs.
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    Financial management practices and financial performance of technical and vocational education and training institutions in Kenya
    (KCA University, 2025) Joseph, Patrick M.
    This study examined the relationship between financial management practices and the financial performance of technical and vocational education and training institutions in Kenya. The TVET sector plays a key role in equipping learners with the technical, vocational, and entrepreneurial skills necessary to support Kenya’s socio-economic transformation and the realization of Vision 2030. Despite increased government funding, many public TVET institutions continue to face significant financial and sustainability challenges due to weak fiscal oversight and resource mismanagement. This study aimed at examining the influence of financial planning, budgeting, internal controls, financial reporting and evaluated the moderating role of governance on the financial performance of these institutions. A descriptive, mixed-method research design was used to collect data from principals and finance officers across the 42 sampled public TVET institutions. Descriptive and regression analyses showed that financial reporting had the strongest positive effect on financial performance, followed by internal controls, financial planning, and budgeting. The results also indicated that effective governance significantly enhanced the relationship between these financial practices and overall institutional performance. The study concluded that effective financial management practices while reinforced by good governance practices are essential for accountability, transparency, and sustainability in TVET institutions. The study recommends continuous capacity building for principals and finance officers, participatory budgeting and automation of financial systems to strengthen institutional performance. These measures are critical to strengthening institutional performance and ensuring that public resources are utilized efficiently to meet the nation's human capital development goals.
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    Corporate restructuring initiatives on the financial performance of state corporations in Kenya
    (KCA University, 2025) Marube, James
    This empirical study investigated the effects of corporate restructuring initiatives on financial performance in Kenyan state corporations, systematically testing four key hypotheses through comprehensive statistical analysis. The research adopted an explanatory design to evaluate how organizational, financial, operational, and strategic restructuring dimensions influenced various financial performance metrics, including return on assets, return on equity, profitability ratios, and revenue growth indicators. The study employed a mixed-methods research approach, collecting quantitative data from 132 state corporations across six economic sectors. Data collection utilized structured questionnaires that were administered to senior executives within these organizations. The regression analysis yielded substantial results with an R-squared value of 0.923 and statistical significance at p < 0.001, indicating that the model explained 92.3 percent of the variance in financial performance outcomes. The hypothesis testing revealed distinct patterns across the four restructuring dimensions that were examined. The first hypothesis regarding organizational restructuring was rejected, with a standardized beta coefficient of -0.666 that achieved statistical significance at p < 0.05, revealing a significant adverse short-term effect on financial performance that appeared attributable to transitional disruptions, including workforce reductions and leadership instability during implementation periods. The second hypothesis concerning financial restructuring was also rejected, demonstrating a standardized beta coefficient of 0.610 with statistical significance at p < 0.01, confirming financial restructuring's substantial positive impact on organizational performance, particularly through effective debt restructuring initiatives and equity capital optimization strategies. The third hypothesis regarding operational restructuring was accepted, showing a beta coefficient of 0.132 that failed to achieve statistical significance at p > 0.05, indicating no significant standalone effect and suggesting that process improvements required complementary strategic reforms to generate measurable financial benefits. The fourth hypothesis addressing strategic restructuring was rejected, exhibiting the significant positive influence with a standardized beta coefficient of 0.908 that achieved high statistical significance at p < 0.001. The findings demonstrated that strategic initiatives, including mergers, acquisitions, and market repositioning activities, exerted the most substantial impact on financial performance outcomes. The theoretical analysis drew upon established frameworks, including Resource-Based Theory, Transaction Cost Theory, and Contingency Theory, to explain these empirical outcomes, emphasizing how Kenya's unique institutional environment shaped restructuring effectiveness and influenced the relative success of different restructuring approaches. These comprehensive findings provided robust evidence-based foundations for policy recommendations, advocating for prioritizing strategic and financial restructuring initiatives while implementing careful risk management approaches for organizational restructuring activities. The research advanced public sector reform literature by contextualizing restructuring dynamics within a developing economy framework, offering actionable insights that enhanced understanding of state corporation performance optimization in Kenya and similar institutional settings. The study's contributions extended beyond the immediate Kenyan context, providing valuable frameworks and methodological approaches that could inform restructuring efforts in comparable emerging market environments.
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    Off-balance sheet activities, bank size and financial perfomance Of commercial banks listed on Nairobi securities exchange in Kenya
    (KCA University, 2025) Ndavi, Juliana
    Kenyan commercial banks occupy a central position in the country’s financial ecosystem, facilitating market guarantees, capital mobilization, and economic development through regulated and inclusive financial intermediation. Off-balance sheet activities, have been associated with financial performance in different contexts. Therefore, this study seeks to address the existing gap in empirical literature by investigating the manner in which off-balance sheet activities relate to commercial banks listed on NSE in Kenya, The specific objectives were; to find out the effect of trade finance, guarantees, and letters of credit on performance of publicly listed banks in Kenya, and to establish the moderating effect of bank size on the effects between off-balance sheet activities and the commercial banks listed on NSE in Kenya. The theories anchoring the study included; Resource-Based View, Capital Asset Pricing Model as well as the Signalling Theory in addition to the Concentration–Fragility Theory. In the research, causal research design was employed based on panel approach, The research targeted the 11 publicly listed banks in Kenya from the year 2015 to 2024 To facilitate systematic data gathering, a structured data extraction sheet was designed to capture the relevant variables from the secondary sources. Descriptive statistics were utilized to summarize the data, which was presented on frequency tables. Using a Dynamic Panel-Data regression model, at 5% significance level, a model was obtained to predict financial performance of the banks in terms of Off-balance sheet activities. The data was tested for diagnostic tests, which included normality as well as multicollinearity together with heteroscedasticity in addition to autocorrelation, stationary and Hausman Test. The research ethically conducted through adhering to the highest standards of academic integrity and ethical research practice. The study concludes that; trade finance plays a significant positive role the financial performance of commercial banks listed on the NSE, guarantees have a positive and significant effect on bank financial performance, , and letters of credit also positively affect bank financial performance, which confirms that these off-balance sheet instruments are valuable tools to enhance profitability and support banking operations. The study reveals that bank size has positive effects on financial performance independently though it does not play a moderating role on the OBS-performance link. Based on the findings, the research recommends that publicly listed commercial banks should; strategically expand their trade finance offerings, focus on tailoring guarantee products to match client needs, strengthen their letters of credit services, particularly for clients engaged in international trade or corporate financing, as LCs improve profitability and support liquidity management. Policy guidance could focus on providing frameworks that enable smaller banks to participate in OBS activities without disproportionate risk exposure.
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    Financial planning and analysis and the financial performance of firms listed at the Nairobi securities exchange
    (KCA University, 2025) Ndinya, Dorine A.
    The study aimed to analyze the effect of financial planning and analysis on the financial performance of firms listed on the Nairobi Securities Exchange. The specific objectives of the study were to examine the effect of financial modelling and analytics on financial performance of firms listed on the Nairobi Securities Exchange, to determine the effect of budget planning on financial performance of firms listed on the Nairobi Securities Exchange, and to assess the effect of forecasting quality on financial performance of firms listed on the Nairobi Securities Exchange. The dynamic capabilities theory, resource-based view, and information asymmetry theory served as the study's guiding theories. The study concentrated on all 64 companies listed on the NSE and used a descriptive research design methodology. Given the small size of the population under investigation, a census was used for this study. Both primary and secondary data were used. Structured questionnaires were utilized to collect primary data. Using a secondary data collection matrix, secondary data on return on assets were gathered from the annual reports of the 64 companies listed on the NSE over a ten-year period, from 2014 to 2024. A pilot study was conducted to validate and pretest the questionnaire. To evaluate validity and reliability, the researcher relied on the views of research specialists. The data collected were analyzed using both descriptive and inferential statistics. Frequency distributions, standard deviations, means, and percentages were used as descriptive statistics. Regression analysis was conducted to establish the relationship between study variables in inferential statistics. The analyzed quantitative data were presented using tables and graphs. The study was considered significant because it provided actual evidence of how FP&A practices, such as financial reporting, forecasting, budgeting, and performance monitoring, enhanced business profitability, efficiency, and long-term survival. The response rate was 93.4% of the respondents. The findings showed there is a significant positive trend towards financial modelling and analytics, budget planning and forecasting quality had moderate effect on financial performance of firms listed at the Nairobi Securities exchange. The study recommends firms listed at the Nairobi Securities Exchange should adopt an integrated approach to financial planning and analysis by strengthening financial modelling and analytics, enhancing budget planning practices, and improving forecasting quality. Future research should consider expanding the scope beyond firms listed at the Nairobi Securities Exchange to include small and medium-sized enterprises (SMEs) and privately owned companies.
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    Effect of internal audit controls on the financial performance of insurance companies in Kenya
    (KCA University, 2025) Okemwa, Lydiah N.
    This study examined the effect of internal audit controls on the financial performance of insurance companies in Kenya, focusing on four dimensions: quality assurance programs, internal control systems, communication, and the control environment. A descriptive research design was adopted, targeting all 56 registered insurance and reinsurance firms in the country. Out of these, 45 valid responses were collected through structured questionnaires, representing an 80.4% response rate. Descriptive results indicated consistently high implementation levels of internal audit controls, with mean scores ranging between 4.10 and 4.26. Correlation analysis showed significant positive associations between financial performance and internal control systems (r = 0.670), control environment (r = 0.626), quality assurance (r = 0.478), and communication (r = 0.465). Regression analysis further revealed significant effects for internal control systems (β = 0.482, p < 0.001), control environment (β = 0.357, p = 0.002), and quality assurance programs (β = 0.278, p = 0.016), while communication did not show a statistically significant effect (β = 0.021, p = 0.864). The overall model was statistically significant (F = 22.139, p < 0.001) and explained 68.9% of the variance in financial performance (R² = 0.689). The study concludes that internal audit controls play a critical role in enhancing financial performance and recommends strengthening audit frameworks, enforcing compliance, and fostering ethical governance within Kenya’s insurance sector.
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    Chief executive officer characteristics and financial performance of commercial banks in Kenya
    (KCA University, 2025) Nyantika, Bevaline N.
    The performance of commercial banks is critical to the stability and growth of Kenya’s financial sector and the broader economy. This study investigates the influence of Chief Executive Officer (CEO) characteristics on the financial performance of commercial banks in Kenya. Specifically, it examines the effects of demographic attributes age, gender, education, and tenure on key financial indicators, including profitability, return on assets (ROA), and net interest margins. Anchored in the Upper Echelons Theory, the study adopts a quantitative research design and utilizes secondary data sourced from the annual reports and regulatory filings of 39 licensed commercial banks over the period 2003 to 2023. Regression analysis was employed to determine the relationship between CEO attributes and bank performance. The results indicate that certain CEO characteristics significantly influence financial outcomes. CEO tenure and gender diversity were positively associated with improved performance, suggesting that longer-serving CEOs and greater female representation at the executive level enhance strategic outcomes. CEO age also demonstrated a positive relationship with performance, reflecting the value of experience and maturity in executive decision-making. In contrast, the impact of educational background was inconclusive, showing no consistent effect across all performance metrics. These findings highlight the strategic role of executive leadership in shaping financial performance in the banking sector. The study offers key insights for policymakers, bank boards, and stakeholders, emphasizing the importance of integrating CEO demographic considerations into leadership selection processes. Recommendations include the adoption of performance-based remuneration systems, fostering leadership continuity, and promoting gender diversity in top executive roles. Overall, the study enhances understanding of leadership dynamics in corporate governance and lays the groundwork for future research on executive influence in financial institutions.
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    Strategic innovation and financial performance of commercial banks in Kenya
    (KCA University, 2025) Momanyi, Edwin O.
    This study aimed to examine the impact of strategic innovation on the profitability of commercial banks in Kenya. Specifically, it focused on how technological innovation, business model innovation and market expansion influenced financial performance. The research was grounded in the Dynamic Capabilities Theory, Technology Acceptance Model, and Resource-Based View. A descriptive research design was employed, targeting all 42 commercial banks in Kenya, with 126 key participants drawn from the operations, finance, and marketing departments. A census sampling method was used. Data were collected through semi-structured questionnaires (primary data) and annual bank reports from 2019–2024 (secondary data), focusing on metrics such as ROE and ROA. Validity and reliability were ensured through expert consultation and pilot testing. Data analysis involved both descriptive and inferential statistics, and the results were presented using tables and graphs. The response rate was 77.8% of the respondents. The findings showed there is a significant positive trend towards business model innovation, technological innovation, while market expansion had moderate effect on financial performance of commercial banks in Kenya, business model innovation having the highest influence. The study recommends commercial banks in Kenya should intensify efforts to strengthen and scale up the adoption of business model innovations to enhance financial performance. Banks should further leverage data analytics and artificial intelligence to personalize services, improve decision-making, and expand financial inclusion. Future research ought to expand the scope beyond commercial banks to include other types of financial institutions such as microfinance institutions, SACCOs, and investment firms.
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    Effect of Internal Control Practices on Financial Performance of Supermarket Chains in Nairobi Central Business District
    (KCA University, 2018) Gitau,Roselyn N.
    The globalization of the economy has led to retail supermarket opportunities in emerging markets. However, the Kenyan supermarket retailers face a dynamic retail environment highly challenging their financial performance. The survival of Kenyan supermarket retailers depends on the successful and proficient utilization of their financial resources. For the supermarket retailers to meet their financial performance target level, they should initiate internal control practices that keep them on a path toward achieving their financial objectives and the achievement of their missions Even though internal control practices have been implemented in most organizations, financial crimes have continued to rise among supermarket retailers. In Kenya several supermarket retail chains have been experiencing declining financial performance leading to the stores being placed under receivership in the last decade The empirical studies show that only limited studies focused on internal control practice and financial performance among supermarket retail chains in Nairobi central business district, depicting the existence of a knowledge gap. As noted above, there is need for supermarket retailers in Kenya to progress their financial performance by advancing on their internal control practices hence, the present study. The present study suggests that internal control practices help increase financial performance among supermarket retail chains in Nairobi central business district. The current study used a descriptive survey having the 54 main retail supermarkets in Nairobi central business district as its target population and obtained a sample size of 54 through census since the target operation was less than one hundred (100). Data collection involved the use of a questionnaire of which the primary source of data was tested for validly and reliability. Data was analyzed using Quantitative analysis and thereafter descriptive analysis. The study revealed that the average financial performance of supermarket chains in Nairobi central business district is moderate. It established that; there is a moderate positive effect of credit risk assessment practice on the financial performance of supermarket chains in Nairobi central business district, effective procurement control practice highly affects financial performance of supermarket chains in Nairobi central business district, adoption of proper internal checks practices highly affect the financial performance of supermarket chains in Nairobi central business district positively, and practice of segregation of duties has a major positive effect on the financial performance of supermarket chains in Nairobi central business district. The study revealed a 5% level of significance. 49.17% of change in financial performance of supermarket chains in Nairobi central business district is explained by; credit risk assessment practice, procurement control practice, internal checks practice and practice of segregation of duties. The study recommends that the supermarket chains in Nairobi central business district should; review their credit risk assessment practice in the dynamic retail environment, develop and implement a reviewed procurement policy, evaluate and employ the internal checks practices, and lastly the practice of segregation of duties should be actively employed by supermarket chains in Nairobi central business district.
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    Financial Risk Management As A Tool For Improving Financial Performance In Real Estate Investment In Nairobi County
    (KCA University, 2013) Murunga, Patrick M.
    The study is an assessment of the financial risk management as a tool for improving financial performance in real estate investment in Nairobi County. The study intended to use descriptive survey design. The population of the study was all 151 real estate firms. The unit of analysis is the real estate managers of Nairobi Count. A sample of 110 firms was taken. The study used primary data which was collected through use of a questionnaire. Data analysis was conducted using descriptive and inferential statistics. The specific descriptive statistics used were mean scores and frequencies. The particular inferential statistics used was regression analysis. The data was then analysed using STATA. This research set out to find out whether financial management can be as a tool for improving Financial Risk Management in real estate in Kenya. The study has found out that financial risks are present in real estate and the same pose serious challenges to real estate managers and investors. The study has also found out that the risk management measures that the managers in the industry are using are not adequate given the significant losses that are suffered by the real estate managers and investors conducting business within this market. The study has found out that players within the industry are in agreement that effective risk management in real estate can increase profitability, increase operational efficiency and effectiveness and enlarge market share all of which can lead to financial performance. There is therefore need to consider adopting other risk management measures such as operational hedging and financial hedging that could assist managers in real estate minimize the losses suffered attributable to risks. There is need to carry out an in depth analysis that will help real estate managers identify all the risk facing them in real estate. There may be a need therefore to have further researchers investigate this variance and investigate how prepared real estate managers are in managing foreign exchange risk in the real estate market. Future researchers could also investigate the reasons behind real estate investment and the fundamentals that guide such investment. With a moderate risk attitude attributed to Kenyan property investors and their managers, it would be interesting to know what fundamentals drives real investment in Kenya given that risk is of little concern